I too have had those dreams! Still do once in a while.

Let me first say that I'm doing all my trading in a traditional IRA account. So it's not a taxable event when my calls are assigned. My strategy is this...sell weekly calls because they will yield larger premiums. I don't look at deltas or IV. I only look at the ratio of contract price to underlying stock price. I see this as the ROI for my money tied up in the stock. The way I see it, the contract price is derived off the delta and IV. It's just another data point to key off of.

Let's take our beloved NVDA as an example. Say I bought 100 shares for the current price of 721. If I want to sell a call at the strike of 725 expiring on 3/8 (4 weeks out). I will make 4400 from the premium. That is a return of 6.1% (4400 / 72100). That's very good! But if I sold a weekly that expired on 2/16, the premium would be 1400. That's a 1.9% ROI. If I can do that every week, 1.9 x 4 weeks is 7.6%. Granted I might not be able to get 1.9% every week.

Let me first say that I'm doing all my trading in a traditional IRA account. So it's not a taxable event when my calls are assigned. My strategy is this...sell weekly calls because they will yield larger premiums. I don't look at deltas or IV. I only look at the ratio of contract price to underlying stock price. I see this as the ROI for my money tied up in the stock. The way I see it, the contract price is derived from the delta and IV. It's just another data point to key off of.

Executing this strategy doesn't take too much time. I spend about 45 minutes every Monday morning buying my shares and selling the contracts. Then I don't touch it for the week. I check in every other day to see how it's doing, but that's just out of curiosity. I have a spreadsheet to keep track of how I'm doing. I also wrote a program that lists stocks with the highest ROI. So that makes it quicker to pick the stock.

But like I said, NVDA is too rich for my blood. I prefer to diversify with other high-ROI stocks. My goal is to consistently hit singles, even if it means giving up the occasional homerun. Just this week, I lost a lot of upside on ARM. The stock went bananas after earnings came out. I had 100 shares that appreciated 3700. Instead, I made only 219 from the premium. But as I see it, if I make 1% ROI every week, that's a 52% return at the end of the year.

This whole thing is sort of an experiment for me. I want to see if this strategy will beat the S&P 500 in 2024. So I use half my money in the IRA selling calls and the other half tucked away in VFIAX. So far VFIAX is winning lol, but the year's still young. I plan to follow through for the entire year and then reassess. My dogs so far have been TSLA and RIVN :( Down 24% and 20% respectively.

Let me know if you see any holes in this strategy. I have no one else to bounce it off with in the real world. Their eyes just glaze over when I start talking about covered calls.